Replies to post #436761 on Fannie Mae-No Politics (FNMA)

[contrarian bull]

they are showing as (positive!) stockholder equity

The screen shot you posted won't work for me so I am not sure which line you speak about, but I am looking at Fannie's Sept 30 2017 10-Q...

On the balance sheet on page 65... Under Liabilities and Equity, under Stockholders' equity I see $117b in senior preferred stock issued and outstanding. A positive number. Seems pretty clear it is a liability.

Can you help me find where that shows up as an asset????

Again - while stockholders equity is an asset for the stockholder, its a liability for the company issuing that stock. That is why it is on the Liabilities side of the balance sheet. Maybe the word "equity" is confusing you into thinking it is adding value to fannie? There is a reason it's right there mixed in with Liabilities... it is the opposite of an asset.

[contrarian bull]

Some had asked where that $187.5 billion went - it has been sitting in their balance sheets all along. Of course they don't keep it in cash - they used it to buy mortgage securities and the like... but it's still there.

Also incorrect. That $187.5B, plus around $90B more (and counting), has been sent to Treasury.

Well I was talking about the liquidation preference of the seniors. But given the fungability of money saying that money went to pay the NWS is correct kind of how it's correct that the NWS payments funded Obamacare and my mom's social security.

As for the big bucks plus $90B more - it sounds like you are talking about net dividends paid. Which kinda shows up as an ASSET under LIABILITIES as a negative ACCUMULATED DEFICIT. I still don't fully understand that but hey it's only $200 billion so I just let that one go.

This is too funny - we have the Juniors fighting with the commons on the sidelines as treasury beats us both on the field.

Just so you know where I stand - I have pretty much equal amounts of common and juniors - so I don't really care which fares better.